Ever seen the movie Liar Liar with Jim Carrey?
That’s what I think of when I receive financial information from the seller. Watch this video to find out things I look for when analyzing a real estate deal.
What’s the WORST example of wrong financial info you’ve ever seen?
Leave a comment below and let me know!
Leave A Reply (6 comments So Far)
Murray Lampert
19 days ago
Worst example of being LIED to with regards to financials on an investment? A real estate salesperson whom I knew personally and (I believe without malice) gave me numbers that were totally out of whack with reality for the area…. showing excessive return on the property. Turns out the property was owned by a corporation owned by a group of doctors who were renting the building to themselves, doing zero upkeep and paying themselves high rents, etc. Made it look like the property was worth twice what the actual value was. Due dilligence. Due dilligence.
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Paul Blacquiere Reply:
February 3rd, 2012 at 10:50 am
Wow, now that’s an extreme example and certainly a ‘creative’ way to increase the value of your building LOL
I’ll say it again… I’ve NEVER seen the numbers on a listing be correct. Usually they are off by a bit, but sometimes you get people trying to take advantage of others (as is this case) and the numbers are WAAAYYY off.
Thanks for sharing Murray
Paul
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Allan Turner
41 days ago
Hi, some great points to keep in mind. I especially like the part on property taxes. If it has been re evaluated in the last year that # could be significantly different from the year before.
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Paul Blacquiere Reply:
January 12th, 2012 at 2:04 pm
That is so true! I remember awhile back the City of Ottawa decided to increase property taxes, and my small multi-units got hit hard — increases of over 30%! Imagine if I had been buying those properties, and counting on the tax expense being accurate to ensure positive cashflow…
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Dave Condon
41 days ago
Hi Paul, That is great information, and they say the numbers don’t lie. Thank you for sharing.
Dave from Kamloops.
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Paul Blacquiere Reply:
January 12th, 2012 at 11:14 am
Thanks Dave. It might be more accurate to say “accurate numbers don’t lie”, as I’ve seen too many examples of wrong numbers!
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